Crypto Exchange Rain Allegedly Exploited for $14.8M: ZachXBT

Published: May 13, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

In a recent revelation by on-chain investigator ZachXBT, the Bahrain-based crypto exchange Rain appears to have fallen victim to a significant exploit. The exploit has resulted in a loss of approximately $14.8 million.

The alleged incident, which took place on April 29, 2024, was brought to light through a Telegram post by the renowned sleuth.

Key points:

  • Rain’s BTC, ETH, SOL, and XRP wallets experienced suspicious outflows on April 29, 2024.
  • Stolen funds were quickly transferred to instant exchanges and converted to BTC and ETH.
  • Rain has yet to make an official statement regarding the incident.
  • Last year, the exchange was granted permission to operate as a virtual asset brokerage and custody service provider in Abu Dhabi.

Also read: Crypto Funds See $130M Inflows, Ending 5-Week Outflow Streak

According to ZachXBT’s findings, the stolen funds were promptly moved to instant exchanges and swapped for Bitcoin (BTC) and Ethereum (ETH). The current whereabouts of the illicit funds are as follows:

  • 137.9 BTC held in the address: bc1q53aawrkpt5lvk2e30z36unvmhqqdru7q4rprp2
  • 1,881 ETH held in the address: 0x197bc094f990261fd6841342901c451858756c28

Rain has not yet commended on the alleged crypto hack

As of now, Rain has not issued any official statement addressing the alleged exploit. This has left investors and the broader crypto community in the dark about the extent of the damage and the exchange’s planned response.

This incident comes just a year after Rain secured permission to operate as a virtual asset brokerage and custody service provider from Abu Dhabi’s financial regulator. The exchange also expanded its presence in the United Arab Emirates with the license it obtained in 2023.

Also read: Chinese Police Bust $296 Million Illegal Crypto-Based Underground Bank

Rain’s alleged exploit is just one of the many hacks and exploits happening in the crypto industry. In recent posts, ZachXBT has also shed light on other significant events. This includes North Korea’s Lazarus Group laundering $200 million worth of crypto into fiat currency over a four-year period, as well as a Bored Ape Yacht Club token holder losing three rare NFTs to a phishing attack.

According to the exchange’s website, Rain’s “pro” version, an advanced trading platform, has been experiencing intermittent downtime since May 5, following the alleged exploit. 

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.